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H0690...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to provide that under no circumstances
shall an operator or a promoter be responsible for sales or use tax not
remitted by a retailer at a promoter-sponsored event.
02/24 House intro - 1st rdg - to printing
02/25 Rpt prt - to Rev/Tax
03/07 Rpt out - rec d/p - to 2nd rdg
03/08 2nd rdg - to 3rd rdg
03/14 3rd rdg - PASSED - 65-0-5
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Boe, Bruneel,
Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Denney,
Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Shepherd, Smylie, Stevenson, Stoicheff, Stone,
Taylor, Tilman, Trail, Wheeler, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Black, Deal, Ellsworth, Smith, Wood
Floor Sponsor - Chase
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Loc Gov
03/23 Rpt out - rec d/p - to 2nd rdg
03/24 2nd rdg - to 3rd rdg
04/04 3rd rdg - PASSED - 32-0-3
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Ingram,
Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Parry, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Walton, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--Davis, Hawkins, Noh
Floor Sponsor - Keough
Title apvd - to House
04/04 To enrol - rpt enrol - Sp signed
04/05 Pres signed - to Governor
04/14 Governor signed
Session Law Chapter 349
Effective: 04/14/00
H0690
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 690
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROMOTER SPONSORED EVENTS FOR PURPOSE OF THE SALES AND USE TAX;
3 AMENDING SECTION 63-3620C, IDAHO CODE, TO PROVIDE THAT UNDER NO CIRCUM-
4 STANCES, SHALL AN OPERATOR OR A PROMOTER BE RESPONSIBLE FOR SALES OR USE
5 TAX NOT REMITTED BY A RETAILER AT A PROMOTER SPONSORED EVENT; AND DECLAR-
6 ING AN EMERGENCY.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-3620C, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-3620C. PROMOTER SPONSORED EVENTS. (1) The operator or promoter con-
11 tracting with persons for participation in a promoter sponsored event, as a
12 prerequisite to renting or leasing space to any person for conducting business
13 as a retailer on any premises owned or controlled by that operator or pro-
14 moter, shall obtain:
15 (a) Written evidence that the retailer holds a valid seller's permit
16 issued pursuant to this chapter or will apply to the state tax commission
17 for a regular or temporary seller's permit; or
18 (b) A written statement from the retailer that the retailer is not offer-
19 ing for sale any item that is taxable under this chapter or is otherwise
20 not required to hold a valid seller's permit.
21 (2) Such written evidence or statements shall be in such form and contain
22 such information as the state tax commission shall require, and shall include
23 the retailer's taxpayer identification number. The operator or promoter shall
24 submit the documents to the state tax commission within ten (10) days follow-
25 ing the beginning of the event.
26 (3) (a) The state tax commission may appoint a sponsor or promoter as its
27 agent for issuing temporary seller's permits to participants in the event
28 and for accounting for such permits.
29 (b) A sponsor or promoter appointed to issue temporary permits under this
30 subsection shall be entitled to a credit or refund of income or franchise
31 taxes imposed under chapter 30, title 63, Idaho Code, in the amount of one
32 dollar ($1.00) for each such temporary permit issued by the sponsor or
33 promoter during the taxable year.
34 (4) Any operator or promoter of a promoter sponsored event who fails to
35 comply with this section may be subject to a minimum penalty of fifty dollars
36 ($50.00) per event and twenty-five dollars ($25.00) for each seller over two
37 (2) sellers for whom such records required by subsection (1) of this section
38 are not obtained, but not to exceed one thousand dollars ($1,000) for each
39 such event. Under no circumstances, shall an operator or a promoter be respon-
40 sible for sales or use tax not remitted by a retailer at a promoter sponsored
41 event.
42 (5) The penalties provided in subsection (4) of this section shall not
43 apply:
2
1 (a) Unless the state tax commission shall have previously given notice to
2 the operator or promoter or its officer, agent or employee, by certified
3 mail, of the requirements of this section and of a violation of this sec-
4 tion by the operator or promoter or its officer, agent or employee; or
5 (b) If the operator or promoter shows that such failure was due to rea-
6 sonable cause and not to willful neglect.
7 (6) The state tax commission shall give notice of any penalty provided in
8 this section and it shall assess such penalties in the manner provided for
9 deficiencies of tax.
10 (7) "Promoter sponsored event," as used in this section, means a swap
11 meet, flea market, gun show, fair or similar activity involving a series of
12 sales sufficient in number, scope and character to constitute a regular course
13 of business; or any event at which two (2) or more persons offer tangible per-
14 sonal property or services for sale or exchange and at which a fee is charged
15 for the privilege of offering the services or displaying the property for sale
16 or exchange; or at which a fee is charged to prospective buyers for admission
17 to the area where the property or services are offered or displayed for sale
18 or exchange.
19 SECTION 2. An emergency existing therefor, which emergency is hereby
20 declared to exist, this act shall be in full force and effect on and after its
21 passage and approval.
STATEMENT OF PURPOSE
RS 10087
The purpose of this legislation is to ensure that Idaho Code is clear on the
intent and implementation of the "Promoter Sponsored Sales Tax", which was
instituted in HB 124 in the 1999 Session.
The intent was to have the event promoter establish that any vendor who
offered taxable items for sale at the event had a current sales tax permit from the
Idaho State Tax Commission or obtained a temporary permit from the promoter
of the event.
There in no responsibility or liability on the part of the promoter for
payment of said sales tax. Once the promoter completes the paperwork, the
responsibility shifts to the vendor, who is responsible and answerable to the tax
commission. Conversely, it is the tax commission's responsibility to pursue tax
collection from the vendor.
FISCAL IMPACT
There is no fiscal impact as a result of this change in code.
Contact
Name: Senator Shawn Keough
Phone: 332-1340
STATEMENT OF PURPOSE/FISCAL NOTE H 690